Owner occupiers whose town centre homes are earmarked for demolition will be able to stay in their old neighbourhoods, said Middlesbrough Council chiefs.

Under the plans - which have sparked public protest - about 1,500 houses will be demolished, mainly in the Gresham and southern part of the Middlehaven ward areas.

Almost 90pc of the 11,500 older houses in inner Middlesbrough will stay and 6,000 will be in line for renovation.

There will also be 750 new homes to buy or rent and improvements to community security, the environment and local facilities.

Councillor David Budd, the council's executive councillor for regeneration, said: "Every current owner-occupier of a house which is cleared will be offered a house of the same or better standard in the inner Middlesbrough area, if that is what they wish.

"We want to stress these plans are about rebuilding communities, not knocking them down," Cllr Budd said.

"We will renovate more than half the homes in the area and create a far healthier, more attractive environment.

"At the moment, people are drifting away from inner Middlesbrough. These plans will draw people back there, particularly families."

He said owner occupiers would be paid full market value for their homes, calculated as if no demolition plans existed. They would also get a home loss payment of at least #3,800 or 10pc of the value of their home, whichever is greater.

"We will cover removal costs and will consider extra payments if a comparable property costs more," said Cllr Budd.

He pointed out that one in ten terraced houses in that area is empty and that house prices have fallen in the area, while elsewhere they have gone up.

"Those aren't the signs of a stable community and we think the message is clear. We need major change to secure a long-term future for inner Middlesbrough," he said.